A buyer rebate is one of the most misunderstood ways to save money on a home purchase. Here is exactly how it works, and why it is completely legal in Texas.
What is a buyer rebate?
When you buy a home, the agent who represents you earns a commission, paid out of the transaction at closing. A buyer rebate simply means your agent returns a portion of that commission to you. With MyHomeReturn, that is 25% of the gross buyer-agent commission, paid back to you at closing.
Why does that money exist in the first place?
A buyer-agent commission is part of almost every home sale. In the traditional model, your agent keeps all of it and you see none of it, even though it came from your transaction. The rebate model recognizes that you should share in it. Nothing about your purchase price changes; the money was already in the deal.
Is it legal in Texas?
Yes. Buyer rebates are permitted in Texas, and they are disclosed on your closing statement so everything is transparent and on the record. A handful of states restrict rebates, but Texas is not one of them.
How much could you get back?
Your rebate is 25% of the buyer-agent commission. On a $350,000 home with a 3% buyer-agent commission, that commission is $10,500, and your rebate would be about $2,625. The exact number scales with your price and the agreed commission. You can estimate your own rebate here.
How and when do you get paid?
The rebate is delivered through the closing process and shown on your closing statement. Depending on your lender, it may come to you directly or be applied toward your closing costs. The buyer-agent commission itself is negotiable and is confirmed in writing in your representation agreement before you are ever under contract, so there are no surprises.
So what is the catch?
There isn't one. You pay the same price for the home, you get the same full representation from first call to closing, and you keep more of your own money. The only difference from a traditional purchase is that part of the commission comes back to you instead of disappearing.